Essentials in 3 hours - Result Bridge

Prerequisites

A basic understanding of finance and management accounting is required

Objectives

◗ Identify the factors that influence changes in the result.

◗ Analyze the change in earnings compared to the previous period (or compared to the forecast) by root cause and area of responsibility, based on the revenue analysis.

◗ Calculate the key variances by linking them to operational levers.

◗ Interpret this analysis and draw conclusions to improve performance.

Training program

◗ Read and interpret results using vertical and horizontal analysis

– Reading the P&L in terms of value, percentage, and basis points
– The margin cascade: margin on variable costs, gross margin, operating income
– Analyzing an item that improves in value but declines in percentage terms
✔ UNDERSTAND | Illustration: Margin cascade in a P&L
✔ APPLY | Case Study: Calculate the operating income variance
✔ EVALUATE | Quiz: In your opinion…?

◗ Break down income variances by origin

– Calculating variances: volume, price, mix, performance effects, exchange rates, scope, non-recurring items
– Finalizing the material and MOD analysis
– Squeeze effect, price changes, inflation, impact of purchasing, internal efficiency
– Over- or under-absorption of fixed costs
– Focus on changes in total payroll
– The income statement bridge as a summary report
✔ APPLY | Case study: Analyzing a variance in activity in a workshop
✔ EVALUATE | Quiz: In your opinion… What portion of the variance is due to consumption?

◗ Identifying root causes and leverage effects

– Performance Balance Sheet: Gains vs. Losses, Price/Cost Mix
– PDCA Methodology and the 5 Whys
✔ EXPERIMENT | Workshop: Building a Performance Balance Sheet for an Industrial Scope
✔ APPLY | Case Study: Quantifying the Impact of an Increase in Material Costs on Operating Income
✔ EVALUATE | Quiz: In your opinion… How can a price deviation be offset?

◗ Formalizing and reporting a gap analysis

– Present the results in the form of a graphical bridge
– Supplement with specific comments
✔ UNDERSTAND | Illustration: Reading an operating margin bridge
✔ EVALUATE | Debrief: Strengths and blind spots in financial communication

Why choose this course?

Changes in earnings from one period to the next, compared to the budget or between two business plans, can sometimes be complex to analyze.

This training course offers a rigorous and practical approach to effectively conducting this type of analysis.

Teaching and assessment methods

Distance learning :

– Three visual elements: a video of the presenter, the presentation, and a virtual whiteboard

– Interactive quizzes

– Maximum of 6 participants

Before: self-assessment quiz

During the session: an overview of key principles, a discussion of practical implications, and examples drawn from recent financial statements. Practical exercises and interactive quizzes help ensure that participants have acquired the necessary knowledge.

Afterward: supplementary materials. The facilitator will be available after the training session to answer any questions related to the training.

Price

740 € EXCL. TAX

Testimonials

Essentials in 3 hours - Result Bridge

Jonathan C.
Company
Training

Generalist trainings